Choice Neighborhoods Implementation Grants for Fiscal Year 2025

The Choice Neighborhoods Implementation Grant is a discretionary funding opportunity offered by the U.S. Department of Housing and Urban Development (HUD), specifically through its Office of Public and Indian Housing. This grant supports comprehensive neighborhood revitalization efforts targeting severely distressed public housing and surrounding neighborhoods. The initiative builds on a collaborative model where local governments, public housing agencies, residents, and community partners—including schools, nonprofits, law enforcement, and private developers—work together to implement a comprehensive transformation plan known as a Transformation Plan. The program’s three core objectives are centered on Housing, People, and Neighborhoods. The housing component supports the redevelopment of distressed public housing into high-quality, mixed-income communities that are financially viable and integrated into the surrounding urban fabric. The people component focuses on improving outcomes for residents through services that enhance income, employment, education, and independence, especially for elderly and disabled individuals. The neighborhood component seeks to stimulate broader economic development, increase amenities and services, reduce crime, and restore community confidence. Eligible applicants must be local governments or public housing agencies that previously received a Choice Neighborhoods Planning Grant (FY2023 or earlier). Applicants must jointly apply, and each application must target a specific public housing development and neighborhood previously included in the Planning Grant. A matching requirement of at least five percent of the grant amount is mandated, along with additional match if more than five percent of grant funds are used for supportive services. Matching contributions may include cash or in-kind support but cannot include other Section 24 funding. The maximum grant request is capped at $26 million, or the amount determined by a HUD-prescribed grant sizing methodology, whichever is less. HUD anticipates awarding approximately four grants, with $75 million available. Awards are expected by August 31, 2026, with performance starting on the same date and concluding no later than September 30, 2034. Applications must be submitted through Grants.gov by 11:59:59 PM ET on March 9, 2026. Applications must include standard federal forms, detailed budget and narrative components, and extensive documentation of eligibility, readiness, and community involvement. HUD evaluates applications based on threshold eligibility, merit criteria such as capacity, need, and soundness of approach, as well as leverage of other funding. Grant funds cannot be used for pre-award activities, indirect costs, or ineligible improvements like school construction. Housing development proposals must meet strict federal, state, and local standards, and replacement housing must be provided on a one-for-one basis, with tenant rights to return protected. The grant requires grantees to meet early milestones, including delivering key services and updated plans within 120 days and breaking ground within 18 months. Contact information and technical resources are provided within the NOFO, and applicants are strongly encouraged to begin federal registration processes early due to processing time.

Reviewers focus heavily on readiness, leverage, clear phasing, and realistic budget planning; strong cross-sector partnerships are emphasized.